The Monetary Authority of Singapore (MAS), the central bank of the city-state, has issued lifetime Prohibition Orders (POs) against ex-BSI executive Kevin Michael Swampillai over the 1MDB Malaysian state fund scandal.
Swampillai was a representative and head of the Wealth Management Services Department of BSI Bank, Singapore Branch (BSIS).
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After a probe, MAS found that Swampillai along with his then subordinate Yeo Jiawei helped 1MDB to restructure many of its joint venture interests.
The misconduct, which occurred between 2012 and 2013, allowed Swampillai and Yeo to channel part of the fund management fees to an entity beneficially owned by Swampillai.
Swampillai secured nearly $5m in secret profits as a result.
All this was done without the knowledge of BSIS, the probe revealed.
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By GlobalDataSwampillai was also accused of misrepresenting to 1MDB auditor KPMG Malaysia that the assets held by 1MDB’s investment PetroSaudi Oil Services (PSOSL) were liquid and mostly cash. He did this even after being aware of the fact that PSOSL’s assets included two drill ships.
“Mr Swampillai’s actions have given MAS reason to believe that he will not carry out regulated activities honestly. On account of the severity of his misconduct, MAS has prohibited him permanently from performing any regulated activity under the Securities and Futures Act (SFA) and providing any financial advisory service under the Financial Advisers Act (FAA),” the central bank stated.
As a result, Swampillai has been permanently barred from taking part in the management, serving as a director, or a substantial shareholder of any capital market and financial advisory services firm under the SFA and FAA.
Recently, Swiss financial regulator Finma decided to lower the profit disgorgement from BSI for its dealings in the 1MDB scandal.
The watchdog will now confiscate profits worth CHF70m from the bank for its 1MDB ties instead of the original CHF95m.
